The Pending Shift in Global Relationships
In around a week’s time there’ll be a version 2 of a Trump Presidency in the United States.
One thing I’d expect to see is a much less bridled Trump presidency. The first time around a number of long standing and experienced people were around to temper and guide some of the thinking. This time around, all things seem to suggest that a reelected Trump will be much less likely to hold back and will not have the kind of experienced hands around to guide or temper some of his ideas. Thought bubbles and impulses will be less likely to be deflected, curtailed or polished into useful well structured policy.
Talks of tariffs abound. Australia should not expect to be immune from such actions. And one thing we know about tariff laden policies – it’s the consumers at home that pay the price first up – suppliers may not see any negative impact for quite some time. Until an economy completely tanks. Another thing that often happens is that local supplier profit-opportunists, ALSO increase their prices. After all if a consumer used to paying $50 for a bucket and spade now has to pay $75 from an overseas supplier, then a domestically produced bucket and spade for $70 is a much better choice, is it not?
No, no it is not. It’s just a less worse option. Anyway, as the saying goes, ‘watch this space!’
In short – ‘No’. In days of yore manufacturing data meant jobs being done, employed people being paid, sales being made. But with robotics and off-shoring in many parts of Australian manufacturing, it’s no longer the value indicator it once was. In the US it is an even less reliable indicator because in the…
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